Federal Court Denies Plaintiffs’ Motion for Preliminary Injunction Against California’s Laws Related to Corporate Greenhouse Gas Reporting and Climate-Related Financial Risk Disclosures

On August 13, 2025, the U.S. District Court for the Central District of California issued a ruling in the case brought by the U.S. Chamber of Commerce et al. (the plaintiffs) against the California Air Resources Board (CARB) et al. The court denied the plaintiffs’ request for a preliminary injunction against California’s laws related to corporate greenhouse gas reporting and climate-related financial risk disclosures (Senate Bills [SB] 253 and SB 261, respectively, as amended by SB 219). In the ruling, the judge stated that the “[p]laintiffs have not shown a likelihood of success on the merits with respect to either of [their] facial First Amendment challenges to SBs 253 and 261.”

Given the denial of the injunction request, the reporting required by these laws will proceed according to schedule while the broader legal challenge continues through the courts. SB 261 requires entities to submit their first climate-related financial risk report by January 1, 2026, and SB 253 requires entities to report Scope 1 and Scope 2 greenhouse gas emissions in 2026, covering the prior fiscal year. The implementation dates for these bills may come before the next court deadlines and hearings, which are expected to be in 2026.